Wealth Management Blog | WrapManager (21)

JP Morgan: The Importance of Immigration

Posted by WrapManager's Investment Policy Committee

March 14, 2017

In the early days of the new administration, no issue has been more controversial than immigration. The president’s statements on building a wall on the U.S.'s southern border, his actions on banning travel from specific countries and his heightened focus on deporting illegal aliens have generated a negative response from his opponents and a positive reaction from some of his supporters.

As with our entire 100 days of change series, we will try to steer clear of political arguments. Policies in this area do have significant implications for both the economy and, ultimately, financial markets. So what actions has the president taken and advocated, how might these affect both illegal and legal immigration and what could this mean for growth, inflation and investment returns?

Read the entire market commentary here.

Retiring in America: 3 Practical Tips to Help Set Your Course

March 13, 2017

Retirement planning in America is no simple task. Whether it’s navigating the ever-shifting tax code, factoring-in the rising cost of healthcare, or devising income strategies from various sources like Social Security and retirement investment accounts, investors have many decisions to make and potential strategies to pursue. So, amidst the many complexities involved with retirement planning, it’s useful to take a step back and think about retirement planning in simpler terms. In other words, start with a basic framework first, and then grind down into the details from there. Here are 3 practical tips for setting a solid course for your retirement. [+] Read More

Do You Have to Pay Capital Gains Tax on Mutual Funds? - Doug's Quiz Corner

March 10, 2017

Quizmaster, Doug Hutchinson, presents his quiz for the month. Here, Doug explores how to manage capital gains tax on mutual funds. Consider this Scenario: Your friend Joe is preparing his tax returns and is confused as to why he owes taxes on a mutual fund position that he hasn’t sold and went down in value from the purchase price. "I bought $100,000 worth of a mutual fund on October 1st at $10.00 per share in a taxable brokerage account. On December 1st I received a capital gains distribution from the mutual fund. At the end of the year the mutual fund was worth $9.90 per share." "I didn't sell any shares of the mutual fund after I bought them and the price per share has gone down in value since I bought the mutual fund. Why would I owe taxes in this scenario?" What is a potential reason why Joe would owe taxes in this scenario? [+] Read More

Nuveen: Where to Find Value in 2017

March 6, 2017

Where Can Investors Find Value in These Markets? The recent behavior of equity and bond markets creates a conundrum for investors. Equity markets are rallying based largely on expectations for stronger economic growth, while bond yields have been falling and seem priced for economic stagnation. Which signal is correct? The economic environment may grow more complicated in time, but for now we expect acceleration to continue. Read an excerpt of the complete commentary below, or download the entire investment commentary as a PDF. [+] Read More

3 Reasons You Need A Fiduciary

February 28, 2017

In the realm of investment advice, all it takes is seeing the definition of “fiduciary standard” to understand why it’s so important: Fiduciary - “a Financial Advisor held to a ‘Fiduciary Standard’ occupies a position of special trust and confidence when working with a client. As a Fiduciary, the financial advisor is required to act with undivided loyalty to the client. This includes disclosure of how a financial advisor is to be compensated and any corresponding conflicts of interest." Put simply, abiding by the Fiduciary Standard means putting your clients’ interests first. Most investors might read the above definition and think, wasn’t this the rule the entire time? It should be that simple, right? Not necessarily. [+] Read More

Legg Mason: 7 Reasons to Choose Active Management

February 27, 2017

While index investments have their place, it’s important to recognize what actively managed strategies can do for investors — especially in the current environment, where the risks embedded in passive strategies loom large. Market surprises in 2016 underlined the difficulty in predicting what’s coming next. The long run of gains since the financial crisis that buoyed passive strategies may not necessarily be the arc of the future. [+] Read More

7 Tips for Strategic Tax Planning and Filing

February 23, 2017

Editor's Note: This article was originally published in March 2015 and has been updated to include new tips for tax filing year 2016. “In this world nothing can be said to be certain, except death and taxes.” It’s February, which means tax time is just around the corner, and you’ve probably seen lots of articles quoting Benjamin Franklin’s historic quip, but taxes don’t have to be as bad as all that. Whether you’ve already started your taxes, outsourced the entire process to a tax professional, or are waiting until the last minute, small things make a big difference when it comes time to do your filing. These seven strategic tax tips have been selected to help you get the most possible out of your tax filing. So, instead of dreading doing your taxes, maybe this is the year where some extra research could help you save a bit more. Or perhaps you’ll set a goal to finish your taxes earlier than you’ve ever finished them before. So, grab the tax bulls by the horns! And use these seven strategic tips to potentially make your life easier. [+] Read More

Doug's Quiz Corner: Familiarity Bias

February 21, 2017

Quizmaster, Doug Hutchinson, presents his quiz for the month. Here, Doug discusses the pitfalls of familiarity bias. Consider this Scenario: Your friend Jake is considering different investment options and he asks for your advice. "I'm thinking about investing my retirement account in a tech sector equity strategy. I've worked in the tech industry for years and I know the space well so that is the area of the stock market that I'm most comfortable with." "I'm also thinking about investing some funds in my personal brokerage account in the equity of a local Fortune 500 Company. I know a couple of people in my circle of friends who work there so I feel comfortable investing in that company's stock." What feedback should you give Jake about his investment decision making process? [+] Read More

BlackRock: Tax Reform and Trump Trades

February 20, 2017

We see potential for volatility in the coming months as more reform details emerge. Richard Turnill, BlackRock’s Global Chief Investment Strategist, discusses tax reform and the reflation trade. Turnhill was previously Chief Investment Strategist for BlackRock’s fixed income and active equity businesses, and has also led the Global Equity investment team. Read an excerpt of his weekly commentary below, or view the entire weekly investment commentary here. [+] Read More

Katie’s LINC Presentation and the Time She Flew

February 17, 2017

If you’ve ever called WrapManager and been welcomed with a crisp British accent, you’ve had the good fortune to speak with Katie O’Connor, Director of Client Services, over the phone. In her role, Katie works to ensure that our team is utilizing the best technology available today. By combining this technology with a white glove client experience, Katie has helped our customer service approach one to be admired and shared within the industry. As she says, “[because we use] the best technology to deliver a white glove customer service, advisors from around the country want to learn from our experience. And that’s why TD Ameritrade invited me to participate on a panel at their annual National LINC conference [which is for financial advisors] in San Diego this year.” The panel discussion “Leverage Workflows in Your CRM” focused on how financial advisors who use best practices in their customer relationship management (CRM) tool can provide better service to their clients. After the panel, we sat down with Katie to hear more about why this topic and this conference, should matter to WrapManager clients. [+] Read More